Tesla, Boeing, IBM, And General Electric Head Into The Earnings Confessional

Summary:

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Investors next week will be looking at existing- and new-home sales reports as well as the latest durable-goods data ahead of the Fed’s next meeting on November 7. Some 90% of market participants expect the Federal Open Market Committee to cut its benchmark interest rate by 25 basis points while nearly 10% expect no change, according to the CME Group’s FedWatch Tool. Meanwhile, the Bank of Canada is expected to cut interest rates by 50 basis points amid signs of a cooling economy, according to a poll of economists by Reuters. Aggregate earnings are expected to reach a new all-time high for the second straight quarter, with a current estimate of $511.4 billion in Q3, surpassing last quarter’s actual figure of $504.8 billion, per data from Lipper Alpha Insight. However, Q3 earnings were noted to face tougher year-over-year comparisons, resulting in an expected growth rate of 5.0%, down from the 13.2% seen last quarter. Analysts expect the energy sector to see some of the sharpest cuts in guidance alongside the quarterly corporate earnings updates.

The earnings season picks up heat in the week ahead with a focus on industrials, with Tesla (NASDAQ:TSLA), Boeing (NYSE:BA), GE Aerospace (GE), Honeywell International (HON), and United Parcel Service (UPS).

Earnings spotlight: Monday, October 21 – Nucor (NUE) and Logitech (LOGI).

Earnings spotlight: Tuesday, October 22 – General Electric (GE), Philip Morris (PM), Verizon (VZ), Texas Instruments (TXN), Lockheed Martin (LMT), General Motors (GM), and 3M (MMM). See the full earnings calendar.

Earnings spotlight: Wednesday, October 23 – Tesla (TSLA), Coca-Cola (KO), T-Mobile (TMUS), IBM (NYSE:IBM), AT&T (T), and Boeing (BA). See the full earnings calendar.

Earnings spotlight: Thursday, October 24 – Valero (VLO), UPS (UPS), Honeywell (HON), American Airlines (AAL), Northrop Grumman (NOC), Southwest Airlines (LUV), and Dow (DOW). See the full earnings calendar.

Earnings spotlight: Friday, October 25 – Centene (CNC), HCA (HCA), and Colgate-Palmolive (CL). See the full earnings calendar.

Volatility watch: Options trading volume is elevated on Alto Neuroscience (ANRO) and NuScale Power (SMR). The most overbought stocks per their 14-day relative strength index include Arcadium Lithium (ALTM), Eton Pharmaceuticals (ETON), and Cal-Maine (CALM). The most oversold stocks per their 14-day Relative Strength Index include Bioceres Crop Solutions (BIOX), Stride (LRN), LiveOne (LVO). Short interest is elevated on Wheeler Real Estate Investment (WHLR) and Hertz Global Holdings (HTZ) as earnings approach.

IPO watch: HUHUTECH International (HUHU) is expected to begin trading Tuesday after pricing its IPO the day before. Ingram Micro Holding (INGM) will start trading on Thursday after pricing its IPO on Wednesday. The IPO lockup periods expire during the week for blocks of shares of Neo-Concept International (NCI), mF International (MFI), YY Group (YYGH), and CleanCore Solutions (ZONE).

Dividend watch: Companies that have an ex-dividend date coming next week include Caterpillar (CAT), CVS Health (CVS), Lowe’s (LOW), Clorox (CLX), and Fastenal (FAST). Companies forecast to increase their quarterly dividend payouts include Smurfit Westrock (SW) to $0.33 from $0.3025, Hartford Financial Services Group (HIG) to $0.50 from $0.47, Entergy (ETR) to $1.20 from $1.13, and American Electric Power (AEP) to $0.92 from $0.88. Read through some of the dividend stock picks from Seeking Alpha analysts.

Investor events: Qualcomm (QCOM) will hold its Snapdragon Summit in Hawaii Monday through Wednesday. The company is expected to highlight its Snapdragon processors. 13D Monitor will hold its 2024 Active-Passive Investor Summit in New York on Tuesday. The event’s speakers will include Starboard Value Chief Executive Jeff Smith, Glass Lewis Senior Director of M&A Research Jason McCandless, and International Business Machines (IBM) Vice Chair Gary Cohn. Notable investor events during the week include Jefferies (JEF), McCormick and Co. (MKC), Beyond (BYON), and The Container Store (TCS).

Tesla earnings preview: Tesla (TSLA) will report earnings on Wednesday. Analysts expect the EV maker to post revenue of $29.73B and EPS of $0.86. Gross margin is expected to come in at 18.77%. The Elon Musk-led firm will also hold its earnings conference call. A point of major emphasis will be his commentary on the timing of a new mass-market cheaper electric vehicle, as well as the latest updates on FSD, energy storage business, and robotaxi developments.

UPS earnings preview: United Parcel Service (UPS) will report its results on Thursday. Analysts expect the shipping giant to post revenue of $22.16B and adjusted EPS of $1.63.